] HMC Investment Securities on Oct. 18 projected Hyundai Wia
, the automotive parts unit of Hyundai Motor Group, will post earnings below market consensus in the third quarter.
Hyundai Wia’s third-quarter sales will decrease 3.4 percent on-year to 1.75 trillion won (US$1.54 billion), while operating profit will plunge 34.8 percent to 72.8 billion won, the brokerage said.
The HMC Investment Securities’ estimates are below the previous market consensus of 4.9 percent for sales and 14.8 percent for operating profit.
Hyundai Wia headquarters in Changwon, South Gyeongsang Province
“The earnings are affected by the production decline in domestic facilities and cost incurred by building new plants,” Lee Myung-hoon from the brokerage said.
However, Lee said Hyundai Wia’s long-term growth momentum is still robust, driven by increased engine supply within the Hyundai Motor Group.
The securities firm maintained a “buy” recommendation and a target price of 130,000 won.
By Ahn Sung-mi (firstname.lastname@example.org